A quarter of first time buyers are saying that stamp duty is a "major obstacle" to getting on the property ladder, Alliance & Leicester has revealed.
Half of the people who bought their first property in the last 12 months realised that stamp duty was an additional expense only after beginning the mortgage buying process, meaning it had not been factored into their plans, Alliance & Leicester said.
One in four people added that stamp duty could put back their attempts to purchase their first home, the bank added.
Stephen Leonard, director of mortgages at Alliance & Leicester, commented: "Alliance & Leicester's findings show that the cost of stamp duty is a real issue for first-time buyers. There are more than four times as many first time buyers today who view stamp duty as a challenge to buying a home, compared with 30 years ago.
"Clearly home movers, especially first-time buyers, view stamp duty as prohibitive.
"As more properties fall within the higher stamp duty bands, the more important it becomes for potential home owners to realise that stamp duty is a sizeable proportion of the overall cost and take it into account at the outset."To see some of the best deals for first time buyers, click here.
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